Freight Investor Services (FIS), a world-leading broker in freight and commodity futures markets, has announced that it completed its first ‘Blue carbon’ trade in Singapore on 2nd November 2022.
Freight Investor Services (FIS) is working closely with a global firm that has purchased the first verified carbon credits from the Delta Blue Carbon Project (DBC-1), the world’s largest mangrove restoration project. It is located on the southeast coast of Pakistan and covers 350,000 hectares, an area bigger than Luxembourg.
The mangroves were once a vibrant and diverse landscape before experiencing large-scale deforestation. They were used for fuel, wood, and fodder, with open-range grazing by livestock causing further damage. Thanks to Delta Blue Carbon Project (DBC-1), things are now changing. In six years of operation, tens of millions of mangrove seedlings have been re-planted, restoring more than 73,000 hectares of degraded mangrove forests and tidal wetlands. The shipping industry can directly impact the oceans they operate in by investing in Blue Carbon schemes to offset their environmental impact. Freight Investor Services (FIS) proudly offers these credits to their clients.
The project expects delivery of its first three million carbon credits later this year and will sequester an estimated 142 million tonnes of CO2e over its 60-year lifetime. Blue Carbon programs are focused on mitigating climate change by conserving and restoring coastal and marine ecosystems. Coastal ecosystems are some of the most productive on earth. They provide us with essential ecosystem services, such as coastal protection from storms and nursery grounds for fish. We also know that they offer another integral service – sequestering and storing “blue” carbon from the atmosphere and oceans.
It will be an essential part of the solution to global climate change. DBC-1 is one of the first projects to use Verra’s newly developed Blue Carbon tidal wetland methodology. The cutting-edge methodology accounts for the effects of sea level rise over the project’s lifetime. Technical analysis and documentation for DBC-1 were developed in partnership with Silvestrum Climate Associates.
Theodore Goulios, Head of Carbon Emissions Market, said: “I am proud to have completed our first “Blue carbon” trade. Apart from the fact that this project signals the premium at which some buyers were willing to pay for high-quality and unique credit types, most importantly, this contributes to securing the project’s long-term future.”
Source: Freight Investor Services (FIS)